Sustainability efforts are increasingly being driven by the new Corporate Sustainability Reporting Directive (CSRD). At ifac, we are proactively preparing for the upcoming CSRD requirements to ensure our clients are ready to meet the enhanced sustainability reporting standards.
CSRD is an EU regulation designed to enhance and standardise sustainability reporting by companies. Under the CSRD, companies are required to report on environmental, social, and governance (ESG) factors, as well as their sustainability risks and impacts on society and the environment.
Key elements of the CSRD include:
Expanded Scope: It applies to large companies and listed SMEs (small and medium-sized enterprises).
Detailed Reporting Requirements: Companies must provide detailed information on their Scope 1, 2, and 3 emissions, which include direct, indirect, and value chain emissions.
Double Materiality: The directive follows the "double materiality" principle, meaning companies must report both how sustainability risks affect them and how their activities impact society and the environment.
Standardised Framework: The CSRD aims to create more comparable and reliable sustainability data across the EU by aligning with global frameworks like the European Sustainability Reporting Standards (ESRS).
The CSRD's phased introduction started in 2024, with reporting obligation kick-starting in 2025 for large businesses. Full implementation is due by 2026 for many businesses.
How can ifac help your business?
Our consultancy can assist in evaluating Scope 1 and Scope 2 emissions, which cover direct emissions from operations and purchased energy.
At ifac, we are also placing a particular focus on how Scope 3 emissions will impact Irish SMEs embedded within the supply chains of larger companies, who are in the first wave of CSRD reporting and will need to collate emissions from within this value chain.
We aim to simplify what can be an overwhelming process by helping clients implement streamlined tools for ongoing carbon footprint management.
Remembering that what gets measured gets managed – accurate emissions reporting not only ensures compliance but highlights opportunities for cost savings, smarter energy use, and marketing potential. We provide advice to ensure you achieve the best fit for your sustainability goals that are tailored to both your capacity and vision.